Specifics of swiping your card this ‘high fraud season’

By Ragan Robinson

Published: Monday, December 17, 2012 at 05:35 PM.

It’s not just the season for fraud as shoppers feverishly swipe credit and debit cards at malls across America. It’s high season for fraud, says Janet Hart of the Better Business Bureau’s Charlotte office.

PNC Bank says lost or stolen card reports jump by 19 percent in November and December.

Those numbers don’t count the instances when the card might stay in your wallet but the information contained on it ends up in the hands of thieves.

A look at the ins and outs of swiping this holiday season:

1. Zip code? Yes. Phone number? Maybe

The zip code request when you use your card? That’s standard. And it’s one way merchants, banks and credit card issuers try to make sure that’s really you making a purchase without a personal identification number.

It’s not just the season for fraud as shoppers feverishly swipe credit and debit cards at malls across America. It’s high season for fraud, says Janet Hart of the Better Business Bureau’s Charlotte office.

PNC Bank says lost or stolen card reports jump by 19 percent in November and December.

Those numbers don’t count the instances when the card might stay in your wallet but the information contained on it ends up in the hands of thieves.

A look at the ins and outs of swiping this holiday season:

1. Zip code? Yes. Phone number? Maybe

The zip code request when you use your card? That’s standard. And it’s one way merchants, banks and credit card issuers try to make sure that’s really you making a purchase without a personal identification number.

Hart says consumers using cards will sometimes have to punch in the last four digits of their card numbers or the digits located on the back for the same kinds of authentication purposes.

But there are other pieces of personal information collected at cash registers that you aren’t required to give freely.

There’s a good chance the retailer asking for your phone number wants it so the store can send you special offers — or sometimes unwanted text messages depending on whether the shop sells your personal info.

The same is true with your email address.

In response to requests for information you feel unsure about divulging, Hart suggests posing a simple question.

Shoppers are well within their rights to ask what the information will be used for and whether the retailer shares phone numbers or email addresses.

Then make up your mind about whether to provide the data.

2. No failsafe defense against fraud

Plenty of shoppers feel safer running debit cards as credit cards so as to avoid using PINs in full view of anyone who might be interested.

You’re actually bypassing a security measure that way, points out Hart, although it could afford some additional safeguards for shoppers.

In instances where you enter a zip code instead, savvy enough thieves could steal the numbers they need all the same.

3. Credit vs. debit difference: protection

Even if you run your debit card as a credit card, the money still comes out of your bank account and you’re not provided the extra protection that standard credit cards usually offer.

Those measures can include refunds on faulty merchandise, so long as you let your credit card company know quickly enough what happened, Hart says.

There’s also a question of how much money you’ll lose should someone charge fraudulent purchases to your account.

Most credit card companies will cap user charges at $50 if their cards are hijacked.

With some debit cards, card holders can find themselves responsible for higher amounts.

Credit card companies typically take a disputed amount off the account immediately, according to Hart.

With banks, you’ll get your money back but it could take longer.

“We do look at it as zero-liability from a check card standpoint,” says Shirley Edmond, a regional manager for PNC Bank.

That’s after an investigation by the bank. Account holders must also report the fraud within 60 days of receiving statements, adds Edmond.

4. Knowledge the best security

Bankers and consumer advocates both say a good way to protect your money is to watch where it’s going.

Not only should people know where their cards are at all times but they should also consider keeping continual tabs on account levels.

Most banks allow users to peek at checking account balances and transactions from their phones.

Account holders can also set up email or text alerts to let them know when cash comes out of checking or savings.

You can set up alerts to notify you of transactions that exceed a certain amount or you can get a message about every purchase.

Edmond also plugs PNC’s Virtual Wallet, which lets account holders budget a certain amount and get an alert when they’ve spent that much.

5. Take the initiative

There are valid reasons for your bank or your credit card company to call or email you. And there are valid reasons for you to share personal information — from routing to Social Security numbers — with those institutions.

But Edmond says it’s always a better idea to keep that information close to the vest unless you’re the one who contacted the company.

There’s nothing wrong with asking whether you can call back. Online, consumers can go to the bank or company website for contact information, rather than replying to emails.